Government expenditure and budget allocation are important instruments through which the state influences economic growth, social welfare, employment, infrastructure development and income distribution. In a developing economy such as India, public expenditure performs both developmental and redistributive functions. The pattern of government expenditure has gradually changed from an emphasis on administrative and consumption-oriented expenditure towards greater attention to infrastructure, capital formation, human development and targeted welfare. This paper examines the major components of government expenditure and the changing pattern of budget allocation in India, with particular attention to revenue expenditure, capital expenditure, social-sector spending, infrastructure, subsidies, transfers and fiscal consolidation. The study is based mainly on secondary data obtained from Union Budget documents and the Economic Survey of India. Recent official data indicate a significant increase in public capital expenditure. Government capital outlay increased from ₹5.92 lakh crore in FY2021-22 to a budgeted ₹11.21 lakh crore in FY2025-26, an increase of nearly 89 percent. At the same time, revenue expenditure has been rationalised, declining from 13.6 percent of GDP in FY2021-22 to 10.9 percent in FY2024-25. The study argues that the effectiveness of budget allocation should be assessed not only by the amount allocated but also by implementation, efficiency, targeting and measurable development outcomes. A balanced expenditure framework combining infrastructure investment, social protection, human capital and fiscal sustainability is essential for inclusive and sustainable economic development.